Alpha Corporation Reported the Following Data for Its Most Recent

question 3

Multiple Choice

Alpha Corporation reported the following data for its most recent year: sales, $1,000,000; variable expenses, $600,000; and fixed expenses, $300,000. The company's degree of operating leverage is closest to:

• A) 0.25
• B) 2.0
• C) 4.0
• D) 3.3

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Definitions:

Credit To Cash

An accounting entry that increases the cash balance in a company's books.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Replenished

The process of filling up or restoring a stock or supply of something to its previous level or condition.

Every Day

A term denoting something that occurs regularly each day; however, in a financial or business context, it might refer to daily operations or tasks but this usage is not specific.